Milei Is Not Moving Argentina Towards Bitcoin

In recent weeks, there has been a surge of misleading information regarding Javier Milei and his stance on bitcoin. Contrary to some reports, Milei’s administration is not pushing for a bitcoin standard in Argentina. This misconception seems to stem from a meeting held last week with local regulators and the Director of the Crypto Active division from El Salvador, where they exchanged experiences and approaches.

Several publications have incorrectly suggested that Milei intends to adopt bitcoin as Argentina’s official currency, similar to El Salvador. For example, headlines like “Bitcoin-friendly Javier Milei wins Argentina presidential election” and “Argentina’s Newest Presidential Candidate Javier Milei Is Pro-Bitcoin—What Does That Mean?” have fueled this narrative​. However, these reports do not accurately reflect Milei’s actual policy, which is much more nuanced.

While Milei has expressed positive views on bitcoin and criticized the central bank, his main economic proposal has been the dollarization of the Argentine economy, not the adoption of bitcoin as legal tender​​. He supports the freedom to transact. Milei’s comments about bitcoin being a “return of money to its original creator, the private sector” have been taken out of context to suggest a broader policy move towards bitcoin adoption, which he has not proposed.

During the recent meeting with local regulators and the Director of the Crypto Active division from El Salvador, bitcoin was not even mentioned. Instead, the discussions focused on self-custody rights and regulatory frameworks for crypto assets to comply with Financial Action Task Force guidelines while still supporting innovation. Argentina is looking to create a balanced regulatory environment for cryptocurrencies rather than pushing for a bitcoin standard.

Argentina is reviewing the regulations on crypto assets to align with GAFI guidelines. This involves ensuring that Virtual Asset Service Providers or VASPs adhere to stringent regulations, which is not a move towards adopting bitcoin as a legal tender. Ricardo Mihura, president of ONG Bitcoin Argentina, said, “Bitcoin is viewed with skepticism by Argentine authorities, which seem more committed to the GAFI and IMF than with self-custody and on-chain transactions.” He also noted, “Last week, amendments to a tax bill in the Senate went in that direction: only crypto in custody with local VASPs seems to benefit from the tax amnesty regime proposed by the Executive.”

The Central Bank of Argentina continues to deal with issues such as inflation, devaluation, and forex control, making the idea of bitcoin adoption as a primary currency even less feasible. Banks and payment service providers are still banned from offering any type of crypto services or products, which includes bitcoin.

Given the current economic environment, including Milei’s primary focus on dollarization and regulatory compliance, the prospect of Argentina adopting bitcoin as legal tender is unrealistic. Instead, the country is more likely to continue enhancing its regulatory framework to accommodate the growing crypto market while ensuring financial stability​​.

Milei is indeed pro-bitcoin, his policies do not indicate a move towards a bitcoin standard. The current narrative appears to be a misunderstanding or an over-optimistic interpretation of his statements. It is important to distinguish between Milei’s supportive stance towards bitcoin and his actual economic policies, which prioritize stabilisation and mainstream, conventional regulatory adjustments and not a shift to a bitcoin economy.